The investment bank is more confident that the market's opinion about the FTSE 250-listed company is going to improve following the trading update and strategic review last week.
The insurer said it will improve its operating expense ratio to 20% by the end of 2023, with one-off restructuring costs anticipated to come in at £120mln, as well as reducing annual capital expenditure to less than £100mln from 2022 onwards.
Deutsche analysts said in a note the share price has “more than reflected” pressures such as increased competition, lower reserve releases and weaker investment returns, which have been denting profits.
While the shares "have lacked a positive catalyst to justify a turn", they now believe that this positive spark is "closer than previously assumed".
Shares were up 2% to 301.8p on Monday at noon.